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What does capital preservation fund mean?
Capital preservation fund, also known as bond fund, aims to ensure that the net value of the fund will not fall by purchasing fixed-income assets such as bonds. This kind of fund is usually oriented to investors who pursue safe capital preservation and relatively stable return on investment.

The investment strategy of the capital preservation fund is very cautious and pays attention to stability. Its investment portfolio is mainly fixed-income assets, such as government bonds and corporate bonds, keeping a distance from high-risk assets such as stocks. This investment method is suitable for those investors who pursue low risk and predictable return.

Although the income of the capital preservation fund is relatively stable, its yield is relatively low. This kind of fund investment strategy is relatively conservative, which avoids the sharp fluctuation of the stock market, but also loses the opportunity to invest in high-risk and high-yield assets. Investors should consider their own risk tolerance and investment planning when choosing capital preservation funds, so as to achieve the purpose of steady investment and wealth growth.